Paringa BFS proves life at Poplar Grove
PERTH (miningweekly.com) – A bankable feasibility study (BFS) into the Poplar Grove mine, in the US, has estimated a capital cost of $40-million to develop the 1.8-million-tonne-a-year operation, coal developer Paringa Resources reported on Monday.
On a standalone basis, the project is expected to have a net present value (NPV) of $172-million and an internal rate of return (IRR) of 35%.
The company stated that the BFS validated Paringa’s staged development strategy for its Buck Creek complex, in which it would build low capital and operating cost mines near river transportation.
The Buck Creek complex would ultimately produce over 5.7-million tonnes a year.
“Our plan is simple, we will develop low capital and capital cost mines located near river transportation in the Illinois coal basin. We will start with the low cost and high return 1.8-million-tonne-a-year Poplar Grove mine in 2017,” said Paringa CEO Todd Hannigan.
“Once Poplar Grove is established, we will then make low cost modular mine expansions to grow our production to 5.7-million tonnes a year and beyond. We will underpin this growth with long-term sales contracts to ensure that our investments are low risk, high return and generate strong levels of free cash flow.”
Once Poplar Grove is established, the company will make modular expansions to the mine’s capacity, followed by the development of the fully permitted 3.9-million-tonne-a-year Cypress mine.
The combined Buck Creek complex is expected to generate average earnings before interest, taxes, depreciation and amortisation of $132-million, if the two mines are operating at full capacity.
The combined development will have a NPV of $497-million and an IRR of 37%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
